Storage an Allowable Expense

[ApresMoi]

I just took a look at the 'new' IRS allowances, and tallied up all that they list as 'allowable'. Because my rent is WAY below the $1,778 that is allowed for housing and utilities in my area, I will have a lot of disposable income IF they disallow a $300 per month in storage expense that I am listing.

Someone in this forum said they will NOT allow a storage expense. However, I have indirect access to someone who was formerly a BK Trustee, and he said 'dont' worry about it. WT**?? I have no idea what to think.

If it turns out they disallow storage, I really have no business filing at all, because there is way too much disposable income with the current income and expenses.

I just don't want to have gone to all this effort and then get shut down on a Chapter 7.

Has anyone here tried to claim storage expense and had it refused or not allowed?

[momofthree]

Just as a side note: If you have assets that are worth paying $300 a month to store, then the value of the assets may push you into a chapter 13 or a buyout. How long are you planning to keep this storage unit?

[southernbelle]

If it turns out they disallow storage, I really have no business filing at all, because there is way too much disposable income with the current income and expenses.

I just don't want to have gone to all this effort and then get shut down on a Chapter 7.

Has anyone here tried to claim storage expense and had it refused or not allowed?

From my experience (in my BK) I had a failed business and didn't have anywhere to store the equipment from the business and my chapter 7 included monthly storage fees ($120 a month), which wasn't questioned. Truth be told, I didn't have anywhere else to put it. It was either storage or abandon it.

I filed a chapter 7 in which most of my debts were business debts and I wasn't subjected to the Means test which may not have made a difference. IMO if you have personal items in storage the expense might not get questioned but then again it might raise questions about the contents of the items in storage. $300 a month seems like a lot but I don't know your area and it might be completely reasonable. I had pictures of everything in storage as well as a complete list so that I could submit it if needed which also came in handy. I would assume allowing the expense would depend on your TT but in my case I felt it was reasonable to have business items in storage since my BK reflected the business debts.

I will also note that as soon as the TT sent an appraiser to valuate that junk and officially informed me she wasn't interested in liquidating it, I sold that stuff on Craigslist and gave the rest to Goodwill to save $120 a month and was never questioned on it again.

This was my experience. Good luck.

[justbroke]

You can always bury the expense. Whether the United States Trustee (UST) is going to pick apart your expenses, is usually based on your overall case. If you're under-the-median, you're less likely to get scrutiny. Conversely, if you're over-the-median, the UST is looking to pick apart expenses. While there is no specific IRS allowance for storage, you can probably justify it somehow. The Means Test won't have anywhere to put it, but on Schedule J, you could list it as an "other" expense.

I think you were under the median Deluge, so.... you probably wouldn't need to defend it. Howver, a single expense item of $300 will surely stick out.

[ApresMoi]

You can always bury the expense. Whether the United States Trustee (UST) is going to pick apart your expenses, is usually based on your overall case. If you're under-the-median, you're less likely to get scrutiny. Conversely, if you're over-the-median, the UST is looking to pick apart expenses. While there is no specific IRS allowance for storage, you can probably justify it somehow. The Means Test won't have anywhere to put it, but on Schedule J, you could list it as an "other" expense.

I think you were under the median Deluge, so.... you probably wouldn't need to defend it. Howver, a single expense item of $300 will surely stick out.

Thanks everyone. VERY much appreciated. A Trustee questionnaire that I have to fill out asks if I have a self storage unit and, if so, to submit a list of contents. I am WAY under the median, so hopefully they will not bother looking at any of this. I do have photos of the storage contents, so they can view that... and I have informal appraisals of the few items that have any value. We shall see.